Posted by Tina
Yet another of the Obama administrations green energy loan guarantees smells of politics and crony capitalism. This one involves a Madrid based company that in 2009 reported net profits of $288 million and operates in seventy countries. Are Americans being expected to bail out a Spanish “too big to fail” green energy company?
Abengoa is a Madrid-based conglomerate that operates throughout Europe, the Middle East, Latin America, and Asia. It is not starved for cash: according to its 2009 annual report, the firm was valued at $25.5 billion, enjoying a cash flow of $4 billion and a net profit of $288 million. It is traded on the Madrid and Barcelona stock exchanges and employs more than 25,000 workers.
At first glance, Abengoa does not appear to require U.S. government-backed loan guarantees. In 2010 it qualified for private bank loans in 11 countries worth $161 million. In July 2009 alone, Abengoa issued convertible bonds in Europe worth $688 million.
European countries, struggling to make ends meet, can no longer be counted on to provide Abengoa with generous subsidies to sustain their green tech experiments. As a result Abengoa has turned to the US to provide riskless support for their unprofitable green division.
Also worth noting:
A Democrat lobbyist, Mark Rokala, who once worked for the discredited lobby firm PMI of John Murtha fame, has been acting as point man for Abengoa.
Al Gore is invested in this company. I’m thinking a man so religiously dedicated to green technology and politics should be making these loans himself!
But wait there’s even more stupidity involved in this deal.
Special Heads up to Californians
11/10/11 – Forbes announces approval for the Mojave project:
California regulators on Thursday approved a 25-year contract for a 250-megawatt solar thermal plant over objections from their staff that it would cost utility customers twice as much as other renewable energy projects.
The 4-1 decision by the California Public Utilities Commission to green-light the power purchase agreement, or PPA, with Pacific Gas & Electric underscores the politics driving some renewable energy projects. It also raises questions about the economic viability of an older solar trough technology that the developer, Abengoa Solar, will deploy for the Mojave Solar Project in the Southern California desert.
“The PPA unnecessarily saddles ratepayers with extraordinary above-market costs – $1.25 billion,” said Commissioner Mike Florio, who voted against the contract at Thursday’s meeting. “We could probably get almost 500 megawatts of renewable energy for the price we’re paying for this 250 megawatts.”
BIG Democrat tax and spenders, in California and Washington DC, need to be given an extended time out!
When you read stories like this you think, no way, there must be more to this, who could be so blatantly stupid?
Then I am reminded of what P.T.Barnum said, there’s a democrat born every minute.
Well guys here is another one to add to the long list of the Obama’s administration spending our money to pay back his big crony donors. It’s not solor, but we just gave a drug company $433 million for a drug our country doesn’t need.
Complete story below:
Questions Arise Over $433M Smallpox Drug Contract to Company Tied to Dem Donor
Published November 12, 2011
FoxNews.com
Scientists are questioning a $433 million government contract for a smallpox drug they say the country doesn’t need, amid concerns over the way the project was secured for a firm tied to a Democratic donor.
The Los Angeles Times reported over the weekend that U.S. officials took unusual steps to award the contract to Siga Technologies. Democratic donor Ronald Perelman has the controlling share of the company.
The article cited emails showing the Obama administration replaced the lead negotiator on the project following complaints from Siga — Siga was apparently concerned about the government’s objections to how much money Siga would make off the deal.
Earlier, in December, the government also reportedly blocked other companies from bidding on the contract in a second round.
Siga ultimately won the contract in May, but some questioned the price of the drug — approximately $255 per dose — and the practicality of the project.
The government already has a smallpox vaccine on reserve. Siga’s pill is meant to help people diagnosed too late for the vaccine to be effective, according to the Times.
But the drug has not yet been approved by the Food and Drug Administration, and there are limits on how it can be tested.
One epidemiologist described the plan as a “waste of time and a waste of money.”
But Nicole Lurie, the Department of Health and Human Services official in charge of biodefense, told the Times the contract was granted on merit. And she cited a 2004 study showing a “material threat” that smallpox could be a biological weapon.
A Perelman representative also told the newspaper that his political donations merely represent “his right” to support candidates.
Read more: http://www.foxnews.com/politics/2011/11/12/questions-arise-over-433m-smallpox-drug-contract-to-company-tied-to-donor/#ixzz1deLxmxvX
Oh I cant wait to hear Chris preach to us about how this is best for America. Should be entertaining. Back in the day they had Mr. Wizard, Chris is Mr.Tool, take that however you want.